Trading activity improved on the cotton market on Tuesday as exporters showed fresh interest in buying on hopes of increase in business prospects, dealers said. The KCA official spot rate was unchanged at Rs 5,400, they said. Prices of seedcotton in Sindh were at Rs 1800-2300 and in the Punjab at Rs 2200-2650, they said.
In ready dealings over 9000 bales of cotton changed hands at Rs 3300-5700, they added. Market sources said that exporters were active but the mills mostly remained on the sidelines due to falling demand the world-wide. The exporters expect that demand will improve in the coming days. Naseem Usman said that stakeholders of textile and cotton industry in India are going to hold a review discussion to analyse the latest negative impact on the business of cotton.
According to the Reuters, on Monday, the NY cotton futures ended with small gains as steady mill buying supported contracts and the pace of purchases should continue to keep the market supported, analysts said. Benchmark May cotton on ICE Futures US gained 0.52 cents to finish at 90.67 cents per lb, trading from 89.74 to 91.34 cents. The market was well supported above last week's low near 89 cents. Spot March cotton went up by 0.55 cent to settle at 90.40 cents per lb. The March contract will expire on March 8. Volume traded on Monday stood nrar 13000 lots, preliminary Thomson Reuters data showed.
The following deals were reported: 400 bales of cotton from Mir Pur Khas (low quality)sold at Rs 3300, 2000 bales of cotton from Dadu at Rs 4200, 600 bales of cotton from Saleh Pat at Rs 5350, 2000 bales of cotton from Rohri at Rs 5400, 200 bales of cotton from Multan at Rs 5000, 200 bales of cotton from Mailsi at Rs 5000, 400 bales of cotton from Fort Abbas at Rs 5200, 200 bales of cotton from Vehari at Rs 5200, 400 bales of cotton from Hasil Pur at Rs 5250, 400 bales of cotton from Madrasa at Rs 5300, 400 bales of cotton from Bahawal Pur at Rs 5600, 1000 bales of cotton from Rahim Yar Khan at Rs 5600/5650, 400 bales of cotton from Yazman Mandi at Rs 5650 and 600 bales of cotton from Mian wali at Rs 5600-5700.
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The KCA Official Spot Rate for Local Dealings in Pak Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 27.02.2012
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37.324 Kgs 5,400 130 5,530 5,530 NIL
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Equivalent
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40 Kgs 5,787 130 5,917 5,917 NIL
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